Report and Valuation of
Home Bargains Brockwell Centre Northumbriansw.co.uk Road Cramlington Northumberland NE23 1XZ
21 February 2018
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ
Prepared by Sanderson Weatherall 25 Wellington Street Leeds West Yorkshire LS1 4WG
David Haugh, BSc (Hons), MRICS [email protected], 0113 221 6084
Contents
1. Summary ...... 1 2. Instructions ...... 4 2.1. Purpose of Valuation ...... 4 2.2. Asset Type & Classification ...... 4 2.3. Scope of Instruction ...... 4 2.4. Assumptions...... 5 2.5. Valuation Procedure ...... 5 2.6. Conflicts of Interest ...... 5 2.7. Liability ...... 5
3. The Property ...... 6 3.1. Location ...... 6 3.2. The Site ...... 7 3.3. Description & Construction ...... 8 3.4. Accommodation ...... 10 3.5. Development Proposals ...... 10 3.6. Repair & Condition ...... 10 3.7. Services ...... 10 3.8. Statutory Enquiries ...... 11 3.8.1. Highways ...... 11 3.8.2. Planning...... 11 3.8.3. Property Taxation ...... 11 3.8.4. Equality Act 2010 & Disability Discrimination...... 11 3.8.5. The Regulatory Reform (Fire Safety) Order 2005 ...... 11 3.9. Environmental Issues ...... 12 3.9.1. Asbestos ...... 12 3.9.2. Radon ...... 12 3.9.3. Flooding ...... 12 3.9.4. Energy Performance Certificates ...... 13 3.10. Tenure & Tenancies ...... 13
4. The Market ...... 14 4.1. Market Commentary ...... 14 4.2. Sector & Property Specific Market Commentary ...... 14 4.3. Comparable Evidence ...... 16
5. Valuation ...... 18 5.1. Valuation Considerations ...... 18 5.1.1. Marketability ...... 18 5.2. Valuation Opinion ...... 20 5.3. Insurance Reinstatement Estimate ...... 20
6. Terms of Engagement and Guidance for Clients ...... 21 6.1. Extent of Investigations Undertaken ...... 21
7. Appendices ...... 22 Appendix I – Site Plan Appendix II – Photographs Appendix III– Sales Details Appendix IV – Letter of Instruction Appendix V – Terms of Engagement and Guidance for Clients
1. Summary
Report Date 15th February 2018
Addressee The Directors PPNL SPV Commercial B2-1 Limited and PPNL SPV Commercial B2 Limited Wework 15 Bishopgate London EC2N 3AR
Purpose of Valuation Internal purposes
The Property Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ
Description & Tenancies The subject property comprises a detached supermarket premises extending to approximately 12,810 sq ft (GIA), upon a site of circa 1.10 acres which includes 60 car parking spaces. The building is let in its entirety to TJ Morris Ltd t/a Home Bargains, by way of a 25 year lease with circa 13 years and 4 months term certain remaining. The current gross rental passing is £191,127 p.a. with five yearly fixed rental uplifts of 2.25% compounded annually.
The subject site is situated to the southern side of Northumbrian Road, accessible via a Roundabout Junction, within the Brockwell Centre approximately 1.25 miles north from the core of Cramlington town centre.
Area The subject premises extend to approximately 12,810 sq ft (GIA), upon a site of circa 1.10 acres which includes 60 car parking spaces.
Tenure Freehold
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 1
MV1 Market Value (MV) – subject to the existing tenancy in place
£3,000,000 (Three Million Pounds)
MV2 Market Value (MV) – on the special assumption of vacant possession
£1,700,000 (One Million Seven Hundred Thousand Pounds)
MR Market Rent (MR)
£150,000 p.a. (One Hundred and Fifty Thousand Pounds Per Annum)
SWOT Analysis
Strengths Weaknesses
• The key strength of the subject property is that • Paradoxically, a weakness of the property is its it is fully let to TJ Morris t/a Home Bargains at over-rented nature, although this is a gross passing rental of £191,127 p.a. counterbalanced by the length of the term certain remaining as well as the perceived covenant • Furthermore, the lease has circa 13 years and strength of the TJ Morris. 4 months term certain remaining, also incorporating fixed uplifts of 2.25% every five years compounded annually.
Opportunities Threats
• Instigate rent review in June 2021 with • Wider economic and post Brexit uncertainty. subsequent compounded rental growth.
Reinstatement You have also requested that we provide an estimate of the likely reinstatement cost for fire insurance purposes. This estimate has been arrived at as described within our Terms of Engagement and Guidance for Clients.
£1,500,000 (One Million Five Hundred Thousand Pounds)
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 2
Property Risks
• The property is over-rented at its present level and therefore unlikely to be achieved again on the open market.
• Wider economic risks and post Brexit uncertainty.
• Challenging retail environment.
NB This summary should be read in conjunction with the full report attached hereto.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 3
2. Instructions
We refer to your e-mailed instructions dated 30th January 2018, a copy of which is appended to the rear of our report. You have requested valuation advice in respect of the above freehold investment property and we are pleased to report as follows:
2.1. Purpose of Valuation
You have informed us that our valuation is to be prepared for secured lending purposes.
2.2. Asset Type & Classification
It is our understanding that the asset to be valued is a Freehold asset held for investment purposes.
2.3. Scope of Instruction
The property has been valued on the bases requested, as defined in VPS4 of The Red Book.
You have specifically requested our opinion of value on the following bases:
MV1 Market Value (MV) – subject to the existing tenancy in place
MV2 Market Value (MV) – on the special assumption of vacant possession
MR Market Rent (MR)
In accepting your instruction we confirm the following:
The valuation date is at the 15th February 2018.
That we carry Professional Indemnity Insurance on a per claim basis which is adequate in respect of this instruction.
This report has been prepared by David Haugh MRICS (Associate Partner) under the supervision of Ian Naylor MRICS (Partner) who accepts responsibility for this report, has sufficient skills, knowledge and understanding to provide an unbiased and objective valuation and undertake this instruction competently, is a member of the RICS Valuer Registration Scheme and is qualified to provide this advice as an External Valuer in accordance with PS2 of the RICS Valuation – Global Standards (July 2017) published by The Royal Institution of Chartered Surveyors (RICS) (“The Red Book”).
The property was inspected on 2nd February 2018, in dry and bright weather conditions.
We have not made any investigations into the Capital Allowance position in respect of the subject property in the preparation of this valuation; we recommend that the owner of the properties makes their own investigations to satisfy themselves in this respect.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 4
2.4. Assumptions
The asset has been valued in GB Pounds (£)
We append a report on the property, including descriptions and notes as to location, extent and features of the site, construction and accommodation of the buildings, their apparent condition and the results of enquiries of the various authorities. We also include an extract of the Ordnance Survey plan showing the extent of the site, as we understand it to be, outlined in red and include some photographs.
Details of the extent of the property, tenure, tenancies, permitted uses and related matters have been supplied by your customer. Where possible this information has been checked on site.
2.5. Valuation Procedure
This Valuation has been prepared in accordance with the RICS Valuation - Global Standards (July 2017), published by the Royal Institution of Chartered Surveyors (“RICS”) (“the Red Book”) and the IVSC International Valuation Standards (IVS).
2.6. Conflicts of Interest
We have no conflict of interest in providing this advice and having checked our records, we understand none of the Partners nor employees of Sanderson Weatherall have had any other fee earning relationship within the last two years with your customers nor the subject property apart from the fee for this present service.
2.7. Liability
Our valuation is provided for the stated purpose and is for the use of the addressee only and no responsibility is accepted to any other party for the whole or any part of its contents. In particular, our liability is not extended to your customer, nor to any other party or financial institution to whom your customer, in the event of obtaining a copy, might show this report.
Neither the whole or any part of this report, or any reference thereto, may be included in any document, circular, or statement nor our opinions of value disclosed without our prior written approval of the form and context in which they will appear.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 5
3. The Property
3.1. Location
The subject site is situated to the southern side of Northumbrian Road, accessible via a Roundabout Junction, within the Brockwell Centre approximately 1.25 miles north from the core of Cramlington town centre.
The Brockwell Centre contains a number of small retail units, a medical centre, and a public house. Current occupants include; St Oswald’s, Lotus House Takeaway, Brockwell Fish & Chips, One Stop, Papa Johns, Lloyds Pharmacy, Brockwell Medical Centre and The Brockwell Seam.
Cramlington, a larger town in the North East of England, is located approximately 9 miles north of Newcastle upon Tyne and benefits from good road communications, being in close proximity to the A19 and A1 providing access to Northern England and Scotland to the North and Newcastle City Centre to the South. Cramlington is Northumberland’s most important town for modern industry.
The general location of the property is illustrated on the following Ordnance Survey extracts:
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 6
Not to Scale
3.2. The Site
Site Area
0.446 Hectares (1.101 Acres)
Notes on Site
The subject site is irregular in shape and slopes down gently from west to east. The building itself is positioned to the west of the site and faces east overlooking a tarmacadam surfaced car park. There are a total of 60 delineated spaces, which are divided by a service road providing vehicular entry and exit to the site.
The northern boundary of the site is marked by Northumbrian Road, with the southern boundary marked by a public footpath. The western boundary of the site is marked by a wooded area, with the eastern boundary marked by the Brockwell Centre service road.
The extent of the site boundaries as we understand them are shown edged red on the 1:1250 scale Ordnance Survey extract attached within Appendix I.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 7
3.3. Description & Construction
For the purposes of this instruction, we do not intend to describe the forms of construction adopted in detail, but would instead refer you to our photographs within Appendix II.
The subject property comprises a detached supermarket premises extending to approximately 12,810 sq ft (GIA), upon a site of circa 1.10 acres which includes 60 car parking spaces. The building is let in its entirety to TJ Morris Ltd t/a Home Bargains, by way of a 25 year lease with circa 13 years and 4 months term certain remaining. The current gross rental passing is £191,127 p.a. with five yearly fixed rental uplifts of 2.25% compounded annually.
The building itself is believed to date back approximately 30 years and is formed of single storey concrete framed construction. Inner-leaf elevations are of blockwork, with outer-leaf elevations of cavity brick. The structure is surmounted by a series of pitched and hipped tile covered roofs. To the building’s eastern facing elevation there is a protruding entrance canopy incorporating large aluminium framed double glazed windows.
Internally, the premises are fit-out to Home Bargains’ corporate style and in our opinion is well presented throughout. The layout is typical of that of a generic supermarket with a central sales area divided into a number of aisles and a checkout area to the north. The various aisles incorporate non-fitted racking / shelves, providing sales storage, in addition to fridge / freezer areas for perishable goods. Floors are predominantly tile covered, with walls of painted plaster and timber panelling. Ceilings are suspended in nature and incorporate fluorescent panels and comfort cooling units.
To the south of the main sales area there is separate storage accommodation that is not accessible to the general public. We were unable to view this area upon our inspection - although we would assume this to be of a relatively basic specification – also allowing for HGV access.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 8
FRONT ELEVATION
INTERNAL VIEW
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 9
3.4. Accommodation
A summary of the accommodation provided is detailed within the table below:
Description Approximate Gross Internal Floor Area m² sq ft Ground Floor Entrance, Sales Area, Storage, Staff Room & WC’s 1,190.07 12,810
1,190.07 12,810
You have provided us with the above areas pertaining to the subject building, which we assume to be correct. We have cross checked the areas provided against areas taken from the VOA website, with both areas being broadly similar.
3.5. Development Proposals
None.
3.6. Repair & Condition
As referred to in our Terms of Engagement and Guidance for Clients, we have not carried out a building survey and our comments that follow should not be regarded as such.
The building appeared to be in a solid state of repair commensurate with its age, nature of use and forms of construction adopted. We believe the building to be let by way of an FRI lease, although we are unaware if a schedule of condition was undertaken prior to the tenant’s occupation commencing.
Internally, the main sales area was found to be in a good condition and of a high-quality specification throughout. We assume that the remaining areas we were unable to access to be of a reasonable condition throughout.
3.7. Services
Mains Services: We understand that all mains services are connected and available to the property.
Heating: Heating and cooling is provided within the sales area via comfort cooling units. We would assume heating is provided to the storage area via gas fired warm air blowers.
Lifts: N/A
Other: CCTV.
None of the above services were tested during the course of our inspection of the property.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 10
3.8. Statutory Enquiries 3.8.1. Highways From enquiries made of the local Highways Authority we understand that the main roads and footpaths in the vicinity of the property are made up and adopted. As such we assume there are no outstanding liabilities pertaining to the property.
3.8.2. Planning The subject site is allocated as ‘Land for Work Activity’ within the Northumberland County Council Local Plan – adopted May 1999.
The building is not Listed nor is it situated within a Conservation Area.
3.8.3. Property Taxation The property is assessed in the 2017 rating list as follows:
Address Description Rateable Value
Somerfield, The Brockwell Centre, Northumbrian Shop and Premises £149,000 Road, Cramlington, Northumberland, NE23 1XZ
The National Non-Domestic Rating Multiplier is set at 47.9 pence in the pound for rateable values above £51,000 for the rates year 2017/18.
The subject property may be subject to transitional phasing and as such multiplying the Rateable Value by the National Non-Domestic Rating Multiplier may not give a true representation of the rates payable.
3.8.4. Equality Act 2010 & Disability Discrimination It should be noted that our inspection of the premises does not constitute an accessibility audit for Equality Act purposes.
On the basis that an accessibility audit for Equality Act purposes has not been undertaken, we would recommend that the occupiers commission an audit to ensure compliance with the relevant legislation and undertake those works identified that are considered to be economically viable.
3.8.5. The Regulatory Reform (Fire Safety) Order 2005 We have not had sight of any Fire Safety Assessment for this property, and we would recommend therefore that the occupiers take this in hand to ensure that they are in compliance with the legislation.
Our valuation assumes on the basis that a Fire Safety Assessment has not been carried out that the findings of any such report would not be valuation significant.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 11
3.9. Environmental Issues
We are not Chartered Environmental Surveyors and we have not been instructed to make any investigations, in relation to the presence or potential presence of contamination or other environmental features in land or buildings or affecting the property. We have not carried out any investigation into past uses, either of the properties or any adjacent land, to establish whether there is any potential for contamination from such uses or sites, and have therefore assumed that none exists. In practice, purchasers in the property market do require knowledge about contamination and other environmental factors. A prudent purchaser of this property would be likely to require appropriate investigations to be made to assess any risk before completing a transaction. Should it be established that contamination does exist, or the property is affected by other environmental factors, this might reduce the value now reported.
No indications of past or present contaminative land uses or other environmental features were noted during our inspection. Our inspection was of a limited visual nature and we cannot give any assurances that previous uses on the site or in the surrounding areas have not contaminated subsoils or groundwaters. In the event of contamination being discovered or if it transpires there are other environmental features specifically affecting the property, further specialist advice should be obtained. You are advised to ensure that your legal adviser takes up the usual enquiries on your behalf, in respect of possible contamination or environmental issues, prior to entering into any commitments.
Given that the wider Brockwell Centre was constructed within the past 30 years, coupled with the building’s current non-contaminative use, we envisage limited risk in an environmental respect.
3.9.1. Asbestos Our inspection of the property does not constitute a survey in compliance with Government Directives and as such we will not comment in detail on any potential asbestos containing materials believed to be present in the property.
We have not had sight of any Asbestos Register for this property. However, the building is of an age where we believe asbestos containing materials may be present. Our valuation assumes the findings of an asbestos survey would not be valuation significant.
3.9.2. Radon UK Radon has identified the area as one in which the maximum levels of radon gas entering the property is less than 1%. We do not believe this to be valuation significant.
3.9.3. Flooding From enquiries made of the Environment Agency website, we understand the agency classifies the subject property as being within an area categorised as
Flood Zone 1 - land assessed as having a less than 1 in 1,000 annual probability of river or sea flooding (<0.1%)
We are not aware of any flooding issues with the property, nor are we aware of any underground culverts or history of flooding within the area.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 12
3.9.4. Energy Performance Certificates We have ascertained an EPC pertaining to WM Morrisons who we believe were a historic tenant of the premises. This states an Energy Performance Asset Rating of 57 falling within Band C.
Properties within the UK require an Energy Performance Certificate (EPC) when bought, sold, built or rented. An EPC measures the asset rating of a building in relation to its energy performance.
The 2015 Energy Efficiency Regulations, passed in March 2015, set out minimum energy efficiency standards (MEES) for England and Wales. These regulations will make it unlawful for landlords to grant a new lease of properties that have an energy performance certificate (EPC) rating below E, from 1 April 2018. This is seen as a long stop date and the regulations therefore could be introduced sooner. Furthermore, it is conceivable that in the future, the minimum energy efficiency rating could be more stringent. It is also proposed that from April 2023 this requirement will extend to all premises, including those where a lease is already in place and a tenant is already in occupation.
3.10. Tenure & Tenancies
FREEHOLD
We have not examined the title documents nor have we been provided with a report on title in respect of the subject property. We therefore assume that the freehold interest is not subject to any onerous restrictions, charges, easements or rights of way and is in all respects good and marketable. We recommend that legal advice is taken to verify our assumptions to be correct.
We have been provided with a copy of the occupational lease, the main terms of which are summarised below:
Home Bargains, Brockwell Centre, Northumberland Road, Cramlington, Northumberland, NE23 1XZ Landlord Simon Mahesh Patel, Mahesh Gokalbhai Patel and Shardha Mahesh Patel Tenant Somerfield Stores Limited subsequently assigned to WM Morrison Supermarkets Plc and assigned once again to T J Morris Ltd t/a Home Bargains Term 25 years from 22nd June 2006 (13 years 4 months term unexpired) Passing Rental £191,127 p.a. Rent Review 5 yearly fixed rental uplifts of 2.25% compounded annually. Next review 22nd June 2021 Break Clause None Permitted Use A1 Alienation The tenant shall not assign the whole or part of the lease without prior consent from the landlord. Repairs FRI Decoration External – Every 5th year and also within last 3 months prior to expiry Internal – Every 7th year Insurance Landlord to insure and tenant to reimburse Security of Tenure Within the L&T Act 1954
We have obtained a Creditsafe report for Home Bargains Limited, which has a rating of 69 ‘Low Risk’.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 13
4. The Market
4.1. Market Commentary
We would generally comment that macro-economic conditions have, in recent years, continued to improve following the severe economic turbulence experienced during the ‘Credit Crunch’ which statistically was the worst recession since the end of World War II. The UK economy has gradually expanded following the exit from recession in Q2 2009. However, it should be appreciated that the economic and political landscape has changed considerably following the referendum held on 23 June 2016 concerning the UK’s membership of the EU and the consequential decision taken to exit. The immediate days and weeks following the vote was characterised by significant economic and political uncertainty which initially manifested itself with huge volatility in the value of companies listed on the London Stock Exchange, particularly with regards to property and finance related stocks. As such, in the immediate aftermath of the vote it was very difficult to gauge how property markets would react in the short term and many market commentators took a pessimistic view on future growth prospects.
With the benefit of hindsight it has now become clear that occupier and buyer demand within commercial and residential property markets has remained robust in the 12 months following the referendum vote and initial evidence would seem to indicate that values have remained stable. Recent GDP data has also confirmed that the UK economy has defied earlier warnings of an imminent ‘Brexit Recession’ with UK GDP estimated to have increased by 0.7% between Quarter 3 (July to Sept) 2016 and Quarter 4 (Oct to Dec) 2016, revised up 0.1 percentage points from the preliminary estimate of GDP published in January 2017. Growth in 2016 was 1.8% higher than that in 2015.
However, it should be appreciated that there is still enhanced potential for future volatility in the economy and property markets in the medium term future once a clearer picture emerges as to the precise terms of the exit for the EU and the impact upon the UK economy becomes clearer.
In terms of the retail market as a whole, figures show that whilst Q1 2017 High Street volumes were reasonably robust, the announcement of the snap General Election on June 8th resulted in a more subdued Q2 and a 32% decline in transactions compared to the same period in 2016. Although volumes may be lower this doesn’t truly reflect the investor appetite in the market, where good demand for prime secure income remains strong from UK institutions, local authorities and HNWI’s. The secondary markets, with weaker occupational demand and consequently rental growth, still remain challenging; however more realistic pricing from vendors is resulting in a steady flow of smaller High Street deals.
4.2. Sector & Property Specific Market Commentary
There appears to be an air of optimism within the local commercial property market of late, with increased levels of activity across all sectors. Even though there is greater optimism, market conditions for retail properties remain difficult. The retail sector has been as badly affected as any with a number of high-profile retailers no longer present on the ‘High Street’.
The investment sector has seen increased activity, especially for prime property in established locations. At the other end of the sector there have been a significant number of sales of high’ yielding investments. The latter, are often achieved via auction sales as a result of recovery situations. Notwithstanding this, we
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 14
suspect it will be some time until significant levels of growth are achieved throughout the North East of England, except for prime assets.
That said, the last 12 to 18 months has seen a marked shift in terms of the numbers of sale transactions of commercial investment property, especially via auction with Allsop’s recently undertaking their largest auction (in terms of number of lots) for some years.
There has been an increased ‘flight to quality, with investors, in the main, concentrating their interest in those properties that offer a secure tenant’s covenant and an unexpired term of more than 5 years. With the average length of new leases now at less than 7 years, there is increased competition from investments offering a longer period than average.
The key strength of the subject premises is that they are let in their entirety to TJ Morris (t/a Home Bargains) producing an annual gross rental of £191,127. Furthermore, the lease has approximately 13 years and 4 month term certain remaining, also incorporating fixed uplifts of 2.25% every 5 years compounded annually. In the current economic climate of low interest rates and limited rental growth, the investment offers secure rental growth, which is relatively unique to a renowned national retailer. We believe the favourable terms of the lease, from the landlord’s perspective, to be as a direct result of it being entered into in June 2006 – which is widely perceived in hindsight as the peak of the market.
Paradoxically, a weakness of the property is its over-rented nature, although this is counterbalanced by the length of the term certain remaining as well as the perceived covenant strength of the TJ Morris. Should the building become vacant we believe that tenant incentives would be required in order to secure a new letting. This would primarily be in the form of a rent free period / capital contribution to fit-out.
We understand that you have agreed to purchase the freehold investment in an off-market transaction. The agreed purchase price is £2,975,000 – which equates to a Net Initial Yield (NIY) of circa 6.03%. We believe the proposed purchase to be slightly lower than Market Value (MV) when taking into account the comparable transactions below, as well as the length of term certain remaining and fixed rental uplifts.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 15
4.3. Comparable Evidence
We have had regard to the following supermarket investment sales throughout the North of England:
Address Description Status Achieved Price 87/89 Osbourne Road, A supermarket investment let to Waitrose Sold July 2017 £4,650,000 Jesmond, Newcastle Limited by way of a 25 year lease expiring (NIY 4.67%) NE2 2AN November 2036, subject to a break in November 2026 with a passing rent of £231,939 per annum and 5 yearly 2.50% per annum compounded fixed increases.
The Co-Operative, 65-77 Spital Comprising a small supermarket Sold via auction in £970,000 Lane, Chesterfield S41 0HL extending to circa 4,746 sq ft (GIA). The February 2017 (NIY 4.85%) premises are let in their entirety to the Co- Operative by way of a 15 year lease (circa 14 years unexpired) without breaks. The gross passing rental is £49,725 p.a. (£10.47 per sq ft)
79/85 High Street, Redcar A two storey retail unit comprising 28,684 Sold £2,235,000 TS10 1SF sq ft let to Wilkinson Hardware Stores November 2016 (NIY 8.50%) Limited by way of a 20 year term from December 1996 together with a 5 year reversionary lease agreed with Wilko Reatil Ltd from the expiry of the current lease at a passing rent of £202,000 per annum.
1-7 Booth Street, Felling, A new build town centre foodstore led Sold Asking Price Gateshead NE10 9BF investment. Let to various tenants June 2016 £9,600,000 including Asda (30 year lease), Subway (NIY 5.32%) (14 year lease), Boots (10 year lease) and Greggs plc (10 year lease) with a gross We are aware the rental of £545,380 per annum property sold for slightly in excess of the above price
102 Bradford Road, Ilkley, A new build freehold property comprising Sold £1,440,000 Leeds LS29 6BU ground floor retail premises let to June 2016 (NIY 5.24%) Sainsburys together with residential flats to the first floor producing a gross annual rent of £80,000.
In arriving at our opinion of Market Rent (MR) we have had regard to the following comparable transactions:
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 16
Address Description Status Letting Details Benton Park Road, South We understand that an agreement for Agreement for The premises were let Gosforth, Newcastle upon Tyne, lease was entered into with one of the Lease October by way of a 25 year NE7 7LX largest discount food retailers within the 2017 lease with a tenant’s UK. We are unaware of any further lease option to break in year details, due to the confidentiality of the 2020. The lease also deal at this time. incorporated 5 yearly RPI linked rent reviews, as well as the first two years of occupation at half rent. The agreed rental was £382,000 p.a. (£13.17 per sq ft)
Old Wylam Garage, Main Road, The subject property comprises a former Let August 2017 The premises were let Wylam, Northumberland, NE41 vehicle garage formed of two storeys and by way of a 20 year 8DN extending to circa 5,013 sq ft. As part of lease to the Co- the lease agreement the building was Operative Food. The converted to provide a food store with agreed rental was ancillary accommodation. £25,000 p.a. (£4.98 per sq ft)
Willowburn Retail Park, Alnwick, The subject property comprises a modern Let April 2016 The premises were let to Northumberland, NE66 2JH out-of-town retail unit formed of single on confidential terms to storey and extending to circa 6,000 sq ft. Pets At Home. The quoting rental was £90,000 p.a. (£15 per sq ft)
Suite 3, Station Road, Tyne The subject property comprises a modern Let February The premises were let Valley Retail Park, Hexham, out-of-town retail unit formed of single 2016 by way of a 15 year NE46 1EU storey and extending to circa 7,513 sq ft. lease to Poundstretcher – subject to a tenant option to break in year 10. The agreed rental was £118,125 p.a. (£15.72 per sq ft)
Aldi, South Road, Alnwick, Comprising a modern purpose built October 2015 The premises were let Northumberland, NE66 2PA supermarket premises extending to circa by way of a 15 year 16,332 sq ft. lease with RPI linked rent reviews every 5th year. The tenant has the option of a further 15 year lease at expiry. The agreed rental was £201,218 p.a. (£12.32 per sq ft)
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 17
5. Valuation
5.1. Valuation Considerations 5.1.1. Marketability In making our valuation, we have used the investment method of valuation. The investment method of valuation essentially involves the capitalisation of the rental income (either notional or actual) by a suitable yield to arrive at the capital value. This choice of yield is made by comparison with other (investment) property having regard to matters such as the physical characteristics of the building, use, degree of risk and life of the investment. The yield is therefore a measure of an investor’s opinion of the prospects and risks attached to such an investment.
Generally speaking, a lower yield (and hence a higher multiple of the annual income) would be applied to a well located property, let to a secure tenant for a long term of years, in contrast to a less well located property (with perhaps poorer prospects for future rental growth, let to a weaker tenant with shorter unexpired lease terms).
It also involves an examination of the rental income produced by the property and, as appropriate, it’s potential for growth in the future.
MV1 - Market Value (MV) - subject to the existing tenancy in place
As outlined above, we believe the proposed purchase price of £2,975,000 to be slightly lower than Market Value (MV) when taking into account the comparable transactions below, as well as the length of term certain remaining and fixed rental uplifts. Our opinion of Market Value (MV) is as follows:
£191,127 p.a.
X
6.00% NIY
= £3,196,104
Less purchaser’s costs at their prevalent rate
= £2,992,463
Say £3,000,000 (Three Million Pounds)
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 18
MV2 - Market Value (MV) – on the special assumption of vacant possession
We have capitalised our opinion of Market Rent (MR) below of £150,000 p.a. by an NIY of 7.50% - whilst also allowing for a 6 month rental void and a 12 month rent free period, assuming a 10 year term certain is agreed.
£150,000 p.a.
X
7.50% NIY deferred 1.5 years
= £1,794,300
Less purchaser’s costs at their prevalent rate
= £1,691,861
Say £1,700,000 (One Million Seven Hundred Thousand Pounds)
MR - Market Rent (MR)
In arriving at our opinion of Market Rent (MR) we have taken the gross internal floor area and multiplied it by a suitable rental rate based on market evidence as follows:
12,810 sq ft
X
£11.50 per sq ft
= £147,315
Say £150,000 p.a. (One Hundred and Fifty Thousand Pounds Per Annum)
We consider that a reasonable marketing period in which to achieve our opinion of Market Value (MV) subject to the existing tenancy in place to be in the order of 6 months. We believe that interest would be primarily in the form of national and regional property investment funds. On the basis that the property was to be sold with vacant possession, we believe that similar interest would be received, with a slightly protracted marketing period of 9-12 months.
Should the premises become vacant we would anticipate a re-letting void in the order of 6 months. We believe that interest would be forthcoming from national retailers, of a similar size to the subject tenant. In- line with current market incentives being offered, we have allowed for a 12 month rent free period in return for a 10 year term certain lease agreeable.
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 19
5.2. Valuation Opinion
Having regard to the attached report we are of the opinion that the value of the unencumbered freehold interest on the bases requested is:
Home Bargains, Brockwell Centre, Valuation Bases Northumbrian Road, Cramlington, Northumberland, NE23 1XZ
MV1 Market Value (MV) – Subject to existing tenancies in place £3,000,000 (Three Million Pounds)
MV2 Market Value (MV) – on the special assumption of vacant £1,700,000 possession (One Million Seven Hundred Thousand Pounds)
MR Market Rent (MR) £150,000 p.a. (One Hundred and Fifty Thousand Pounds Per Annum)
We stress the importance of the valuation date as recent experience has shown that property values may change quite significantly over a relatively short period of time.
5.3. Insurance Reinstatement Estimate
You have also requested that we provide an estimate of the likely reinstatement cost for fire insurance purposes. This estimate has been arrived at on an instantaneous basis and will be adopted without regard to future inflation and without provision for loss of rent, any consequential loss or VAT.
We recommend that a level of cover be effected to the sum of:
£1,500,000 (One Million Five Hundred Thousand Pounds)
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 20
6. Terms of Engagement and Guidance for Clients
6.1. Extent of Investigations Undertaken
This report is prepared in accordance with the requirements set out in your detailed letter of instruction and we have made the investigations deemed appropriate to complete this instruction in a competent manner.
David Haugh MRICS Ian Naylor MRICS Associate Partner, Valuation Services Partner, Valuation Services RICS Registered Valuer RICS Registered Valuer RICS Registration Number: 5628740 RICS Registration Number: 0074829
15th February 2018
Authorised to sign for and on behalf of Sanderson Weatherall LLP
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 21
Appendix I
Site Plan
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 23
6
5
6 2
Underpass
4
2
2 1
El Sub Sta
y ED Bd Posts Posts
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
Appendix II
Photographs
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 24 FRONT ELEVATION
TYPICAL INTERNAL VIEW
Appendix V
Terms of Engagement and Guidance for Clients
Home Bargains Brockwell Centre Northumbrian Road Cramlington Northumberland NE23 1XZ 27
VALUATION PROCEDURES AND ASSUMPTIONS – PROPERTY APPRAISAL AND VALUATION
TERMS OF ENGAGEMENT AND GUIDANCE FOR CLIENTS
Our valuation work is carried out on the basis set out below unless specifically varied by our initial letter confirming our instructions (“our initial letter”), or our subsequent report, of which this document will form an integral part.
1 Reports and Valuations
1.1 Will be prepared in accordance with the current edition of the RICS Valuation – Global Standards, July 2017, published by the Royal Institution of Chartered Surveyors (“RICS”) (“the Red Book”). Any departure from the Red Book will be recorded in our initial letter and confirmed in our report.
1.2 The valuers to be responsible for the work are external valuers as defined by the Red Book.
2 Disclosure
2.1 Our valuation will be provided for the stated purpose and will be for the use of the addressee only. No liability will be accepted to any other party without our specific prior written approval.
2.2 Publication of our report, or any reference thereto, in whole or part, in any document, circular or statement, in either hard copy or electronically (including any web site) will be permitted only with our prior approval, this to include the form and context in which it will appear.
3 Liability
3.1 Our valuation is confidential to the party to whom it is addressed for the stated purpose and no liability is accepted to any third party for the whole or any part of its contents. Liability will not subsequently be extended to any other party except on the basis of written and agreed instructions; this will include an additional fee. Except as set out in 3.2 below, the terms of the agreement between Sanderson Weatherall LLP and the client are not enforceable by any third party under the Contracts (Rights of Third Parties) Act 1999.
3.2 No claim arising out of or in connection with this agreement may be brought against any member, employee, partner or consultant of Sanderson Weatherall LLP (each called a “SW person”). Those individuals will not have a personal duty of care to the client or any other party and any such claim for losses must be brought against Sanderson Weatherall LLP. Any SW person may enforce this clause under the Contracts (Rights of Third Parties) Act 1999 but the terms of our agreement may be varied by agreement between the client and Sanderson Weatherall LLP at any time without the need for any SW person to consent.
3.3 We do not accept liability for any indirect or consequential loss (such of loss of profits). Nothing in these terms of business (or in our initial letter) shall exclude or limit our liability in respect of fraud or for death or personal injury caused by our negligence or for any other liability to the extent that such a liability may not be excluded or limited as a matter of law.
3.4 Subject to the provisions in this clause 3, if you suffer loss as a result of our breach of contract or negligence, our liability shall be limited to a just and equitable proportion of your loss having regard to the extent of responsibility of any other party. Our liability shall not increase by reason of a shortfall in recovery from any other party, whether that shortfall arises from an agreement between you and them, your difficulty in enforcement, or any other cause.
July 2017 (UL)
4 The Inspection and Subsequent Enquiries
4.1 Will be carried out by RICS Registered Valuers and general practice surveyors making appropriate investigations having regard to the purpose of the valuation and to any restrictions recorded within our initial letter and confirmed in our report.
4.2 No parts of the structure which are covered, unexposed or inaccessible will be opened up for inspection. The exterior will be inspected from ground floor level only, ie without the benefit of access equipment. We cannot express an opinion about or advise upon the condition of uninspected parts and the report should not be taken as making any implied representation or statement about such parts. Furthermore the various services have not been tested. We are therefore unable to report that any such parts of the property are free from defect or that the services are in full working order.
4.3 Unless specifically agreed with you in writing, we shall have no responsibility for the identification of hydrochlorofluorcarbons (HCFCs) in refrigeration, air-conditioning, heat pump or other equipment at the property. We shall also, unless specifically notified, be entitled to assume that all equipment at the property complies with obligations under the EU ODS Regulation (Regulation (EC) No. 1005/2009) and other legal obligations.
5 Condition, Repair and Pollution Hazards
5.1 Unless specifically instructed to carry out a structural survey, test of service installations, site investigation or to facilitate an environmental survey, our valuations will assume:
i) That except for any defects specifically noted in our report, the property is in good condition; ii) That no materials have been used in the construction of the buildings which are deleterious, hazardous or likely to give rise to structural defects, including inter alia high alumina cement or calcium chloride additive, asbestos or any other hazardous or deleterious material or permanent woodwool shuttering iii) That no hazardous materials are present on site. iv) That all relevant statutory requirements relating to use or construction have been complied with. v) That the site is physically capable of development or redevelopment, when appropriate, and that no special or unusual costs will be incurred in site clearance or providing foundations and infrastructure. vi) That the property is not adversely affected by any form of pollution, current or historic, either on or off site. vii) That there are no archaeological remains on or under the land which could adversely impact on value. viii) That there is no abnormal risk of flooding. ix) That any building services are fully functioning to include any which incorporate essential electronic devices and the software which operates such devices.
5.2 We will, however, reflect the general condition of the premises as evident from our superficial inspection and any defects of which we are made aware as summarised in our report.
6 Statutory Matters
6.1 Equality Act 2010 6.1.1 Under the Equality Act 2010 all service providers to the general public are obliged to ensure that all disabled customers are treated, as far as it is reasonable to do so, the same as non disabled customers. The legislation was operative from 1 October 2010 as amended. This legislation also extends to employees of Companies.
6.1.2 It should be noted that our inspection of the premises does not constitute an accessibility audit for Equality Act purposes.
July 2017 (UL)
6.2 The Regulatory Reform (Fire Safety) Order 2005 6.2.1 The Regulatory Reform (Fire Safety) Order affecting all non domestic premises in England and Wales came into force on 1 October 2006. This legislation has removed the requirement of Fire Certificates for non domestic property. Now the person responsible for the premises will be required to carry out their own risk assessment to identify the fire precautions which are required to be in place. To accompany the legislation the Government has developed specific information guides for each type of premises which sets out the guidance on the requirements and carrying out a Fire Risk Assessment.
6.2.2 Our inspection of the property does not constitute a Fire Risk Assessment.
6.3 Control of Asbestos Regulations 2012 6.3.1 Under the Control of Asbestos Regulations 2012 all commercial property owners/occupiers are obliged by law to have completed a Register of all materials containing asbestos within their premises and either remove them or have a programme for managing them so that they do not become a danger to health.
6.3.2 Our inspection of the property does not constitute a survey in compliance with Government Directives and as such we will not comment in detail on any potential asbestos containing materials believed to be present in the property.
6.4 Invasive Plant Species 6.4.1 The three main non-native invasive plant species in the UK are Japanese knotweed, Himalayan (Indian) or purple stinky balsam and New Zealand pygmyweed. Other notifiable plants and weeds include inter alia giant hogweed, ragwort and azolla.
6.4.2 Japanese knotweed is a rampant non-native invasive species which can cause physical damage to buildings and hard surfaces. Under s. 14(2) of the Countryside and Wildlife Act 1981 it is an offence to cause this plant to grow in the wild. Failure to dispose of any material containing Japanese knotweed may also result in prosecution under this Act and under the Environmental Protection Act 1990.
6.4.3 The likely costs of eradication and removal of plants such as these can be high and time consuming and may impact on the ability to enjoy/develop/redevelop the site and consequently diminish the values reported.
6.5 The Energy Performance of Buildings Directive (England and Wales) Regulations 2007 6.5.1 The Energy Performance of Buildings Directive (England and Wales) Regulations 2007 affecting all non domestic premises in England and Wales came into force on 6 April 2008. This legislation introduced new statutory requirements for commercial buildings offered for sale or to let to have an Energy Performance Certificate (EPC) and for certain buildings to have Display Energy Certificates (DEC). EPCs are required for any commercial building greater than 50m2 (538 sq ft).
6.5.2 Our inspection of the property does not constitute an Energy Assessment of the property.
7 Tenure and Tenancies
7.1 We will rely upon information supplied as to the property, tenure, tenancies, permitted uses and related matters. We will assume such information to be accurate, up-to-date and complete. We will assume that your solicitors are able to confirm the accuracy of these details as set out in our report, and that the interest being valued is in all respects good and marketable. We would welcome the opportunity to consider your solicitor's report on title and to advise whether or not this affects our valuation.
7.2 We will not examine title documents and, therefore, assume that apart from any matters mentioned in our report, the interest is not subject to any onerous restrictions, to the payment of any unusual outgoings or to any charges, easements or rights of way. We will assume that any outstanding requirements of repairing covenants will be met.
July 2017 (UL)
8 Planning, Highway and Other Enquiries
8.1 We will make only informal, oral enquiries of the local planning, highway and other relevant authorities and the information obtained is assumed to be correct. No formal searches will be instigated. Except where stated to the contrary, we will have assumed that there are no local authority planning or highway proposals that might involve the use of compulsory purchase powers or otherwise directly affect the property.
8.2 Where limited only responses have been received to our enquiries which are material to our valuations, this will be confirmed in our report.
9 Floor, Site Areas and Plans
9.1 All measurements will be in accordance with RICS Property Measurement (1st Ed). Unless stated to be otherwise, floor areas will be derived from measurements taken on site or scaled from drawings supplied and checked by sample measurements on site. Site areas will be computed from Ordnance Survey data and not from physical survey. Dimensions and areas should be regarded as being approximate only.
9.2 Where plans are included in our report, these are for identification purposes only.
10 Tenant Status
10.1 We will not make any specific enquiries as to the financial standing of actual or prospective tenants other than those a competent valuer would make when appraising and valuing the property. We will, however, reflect our general understanding of the tenants’ financial status in our valuation and will have assumed, unless informed to the contrary, that the tenants are capable of meeting their financial obligations under the lease and that there are no arrears of rent or undisclosed breaches of covenant.
11 Plant and Machinery
11.1 We will include in our valuations only those items of plant and machinery normally considered to be part of the building service installations and which would pass with the property on a sale or letting. We will exclude all items of process plant and machinery and equipment, together with their special foundations and supports, furniture and furnishings, vehicles, stock and loose tools, and tenant’s fixtures and fittings.
12 Capital Allowances
12.1 Under the Capital Allowances Act 2001, certain allowances (which may have the effect of providing a relief from corporation tax) may be claimed by a person where that person incurs ‘qualifying expenditure’ on particular pieces of ‘plant’ which are fixtures within a building, and which are used by that person for the purposes of a ‘qualifying activity’. Relevant fixtures included within ‘plant’ may include, for example, furniture, machinery, lifts, air conditioning and so on.
12.2 Certain conditions must be satisfied in order to be eligible to claim these allowances. Changes to these conditions were introduced with effect from 1 April 2012, with further changes becoming effective from 1 April 2014. As a result of these changes, anyone contemplating the acquisition of a property must take action, before the acquisition, to preserve any right to claim available allowances, as well as to obtain sufficient information to put them in a position to make such a claim in the future. Failure to do so may mean that the ability to claim capital allowances, or the ability to put a future purchaser in the position to claim allowances, is lost. A seller of property may also wish to consider the position, before disposal, so that it can decide whether the purchase price of the property may be adjusted to reflect any steps it may take to preserve a buyer’s entitlement to claim such allowances.
12.3 We have not made any investigations into the Capital Allowance position of the property in the preparation of our valuation.
July 2017 (UL)
13 Development Properties
13.1 For properties in course of development, we will reflect, unless otherwise stated, the stage reached in construction and the costs already incurred and those remaining to be spent at the date of valuation. We will have regard to the contractual liabilities of the parties involved in the development and any cost estimates which have been prepared by the professional advisers to the project.
13.2 For recently completed developments we will take no account of any retentions, nor will we make allowance for any outstanding development costs, fees, or other expenditure for which there may be a liability.
14 Valuation Date and Currency
14.1 The valuation date will be as at the date of our report unless varied by our initial letter and confirmed in our report. Valuations will be stated in GB pounds (£), unless stated otherwise. You should be aware that property values may change substantially over a relatively short period. If you wish to dispose of this property or part thereof, or to accept a charge over it as security for a loan after the valuation date, we strongly advise a further consultation with us.
15 Costs of Realisation
15.1 Unless stated to the contrary in our report, no allowance will be made in our valuations for the costs of realisation, any liability for tax which might arise in the event of disposal or for any mortgage or similar financial encumbrance over the property. Our valuations will exclude VAT.
16 Bases of Value
16.1 The bases of value will be specified in our initial letter or the client letter of instruction and will be one or more of the following; as defined in the Red Book:
16.2 Market Value (MV)
‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’
16.3 Market Rent (MR)
‘The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’
16.4 Investment Value (or Worth)
The value of an asset to the owner or a prospective owner for individual investment or operational objectives.’
16.5 Fair Value
16.5.1 ‘The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.’ (International Financial Reporting Standards (IFRS) adopted definition)
July 2017 (UL)
16.6 Existing Use Value (EUV)
The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion - assuming that the buyer is granted vacant possession of all parts of the asset required by the business, and disregarding potential alternative uses and any other characteristics of the asset that would cause its Market Value to differ from that needed to replace the remaining service potential at least cost.
16.7 Existing Use Value for Social Housing (EUV-SH) (for Housing Stock Held for Social Housing)
‘Existing use value for social housing (EUV-SH) is an opinion of the best price at which the sale of an interest in a property would have been completed unconditionally for a cash consideration on the valuation date, assuming: (a) a willing seller (b) that prior to the valuation date there had been a reasonable period (having regard to the nature of the property and the state of the market) for the proper marketing of the interest for the agreement of the price and terms and for the completion of the sale (c) that the state of the market, level of values and other circumstances were on any earlier assumed date of exchange of contracts, the same as on the date of valuation (d) that no account is taken of any additional bid by a prospective purchaser with a special interest (e) that both parties to the transaction had acted knowledgeably, prudently and without compulsion (f) that the property will continue to be let by a body pursuant to delivery of a service for the existing use (g) that at the valuation date any regulatory body in applying its criteria for approval would not unreasonably fetter the vendor’s ability to dispose of a property to organisations intending to manage their housing stock in accordance with that regulatory body’s requirements (h) that properties temporarily vacant pending re-letting should be valued, if there is a letting demand, on the basis that the prospective purchaser intends to re-let them, rather than with vacant possession and (i) that any subsequent sale would be subject to all the same assumptions above.
17 Fully equipped operational entities valued having regard to trading potential
17.1 Fixtures and fittings
We will include in our valuations all items normally regarded as trade fixtures and fittings. Furthermore, unless advised to the contrary, we will assume that such items are owned outright and are not subject to any lease, hire purchase or third party charge. However, technical services equipment such as beer raising, cooling and dispensing equipment that can be conveniently or economically removed will be excluded from the valuation.
17.2 Goodwill
The valuation will ignore any value attributable to goodwill other than that which is reflected in the trading potential which attaches to and runs with the property.
17.3 Stock etc
Stock in trade, fuel, glassware etc will be excluded from the valuation.
17.4 Valuation Apportionments
Where given, they are an informal apportionment and do not represent the market value of the elements involved since the true valuation of a trading entity can only be the figure taken as a whole.
18 Valuation Assumptions
18.1 Any assumptions, Special Assumptions, reservations, special instructions or departures from the Red Book will be recorded in our initial letter or the client letter of instruction, and/or confirmed in our report.
July 2017 (UL)
19 Insurance Reinstatement Estimates
19.1 If requested, these will be provided, but should not be confused with a formal Insurance Cost Reinstatement Estimate undertaken by a building surveyor (this can be provided upon request and at an additional charge).
19.2 The estimate will be a guide only to the likely reinstatement cost of the buildings as existing, assuming cover on an indemnity basis with fully operative reinstatement clauses and no special conditions. An instantaneous basis of value will be adopted without regard to future inflation and without provision for loss of rent, any consequential loss or vat. The estimate will include allowances for demolition, site clearance and professional fees.
20 Complaints
20.1 As a regulated member firm of RICS and in accordance with our own quality procedures (we are registered to ISO 9001), we have a complaints procedure, details of which can be supplied on request.
21 Monitoring
21.1 As a member firm of the RICS the valuations under this instruction, may be subject to monitoring for compliance with the RICS Valuation – Global Standards, July 2017. If subject to monitoring we may be required to disclose our file and valuation to officers of the RICS.
22 Money Laundering
22.1 Sanderson Weatherall will undertake identity checks in compliance with the Money Laundering Regulations 2007. We will retain the results in both hard copy and electronic formats for a minimum of 5 years from completion of the instruction.
July 2017 (UL)
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